Omnicell, Inc.
OMNICELL, Inc (Form: 8-K, Received: 04/30/2015 16:06:41)











UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.  20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  April 30, 2015

OMNICELL, INC.
(Exact name of registrant as specified in its charter)

Delaware
 
000-33043
 
94-3166458
(State or other jurisdiction of
incorporation or organization)
 
(Commission File Number)
 
(IRS Employer Identification Number)

590 East Middlefield Road
Mountain View, CA 94043
(Address of principal executive offices, including zip code)

(650) 251-6100
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 





Item 2.02 Results of Operations and Financial Condition

On April 30, 2015 , Omnicell, Inc. issued a press release announcing its financial results for the first quarter ended March 31, 2015. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Number
 
Description of Document
99.1
 
Press release entitled "Omnicell Announces First Quarter 2015 Results" dated April 30, 2015

 


2



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 
OMNICELL,  INC.
 
 
 
Dated: April 30, 2015
 
 
 
 
/s/ Dan S. Johnston
 
 
Dan S. Johnston
 
 
Executive Vice President and General Counsel
                                                      
                                                                           

 


3



EXHIBIT INDEX

Number
 
Description of Document
99.1
 
Press release entitled "Omnicell Announces First Quarter 2015 Results" dated April 30, 2015


 


4


Exhibit 99.1


Contact:
 
 
Rob Seim
 
Omnicell, Inc.
Chief Financial Officer
 
590 East Middlefield Road
800-850-6664, ext. 6478
 
Mountain View, CA 94043
rob.seim@omnicell.com
 
 


Omnicell Announces First Quarter 2015 Results

Revenue of $116.2 million grew 14.2% Year-Over-Year
Acquisitions of MACH4 Pharma Systems and Avantec Healthcare Ltd. completed


MOUNTAIN VIEW, Calif. -- April 30, 2015 -- Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication and supply management solutions to healthcare systems, today announced results for its first quarter ended March 31, 2015. 

GAAP results: Revenue for the first quarter of 2015 was $116.2 million , up $14.5 million or 14.2% from the first quarter of 2014, and down $5.3 million or 4.4% from the fourth quarter of 2014.

First quarter 2015 net income as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $6.3 million , or $0.17 per diluted share. This compares to net income of $6.2 million , or $0.17 per diluted share, in the first quarter of 2014 and net income of $9.2 million , or $0.25 per diluted share, in the fourth quarter of 2014.

Non-GAAP results: Non-GAAP net income was $10.8 million for the first quarter of 2015, or $0.29 per diluted share. Non-GAAP net income for the first quarter excludes $3.7 million of stock-based compensation expense and $1.2 million ( $0.8 million net of the $0.4 million tax effect) of amortization expense for all intangible assets associated with acquisitions made by Omnicell in 2014 and earlier years. This compares to non-GAAP net income of $9.6 million , or $0.26 per diluted share, for the first quarter of 2014. Non-GAAP net income for the first quarter of 2014 excluded $2.7 million of stock-based compensation expense and $1.0 million ( $0.6 million net of $0.4 million tax effect) of amortization expense for all intangible assets acquired in connection with our business acquisitions. First quarter 2015 results compare to non-GAAP net income of $14.3 million for the fourth quarter of 2014 or $0.39 per diluted shares. Non-GAAP net income for the fourth quarter excludes $4.2 million of stock-based compensation expense and $1.2 million ( $0.8 million net of the $0.4 million tax effect) of amortization expense for all intangible assets associated with our business acquisitions.

“I am pleased to report Omnicell's very strong start to the year, as the success we achieved in 2014 based on our established growth strategy is continuing to deliver great results,” said Randall Lipps, Omnicell president, chairman and CEO. “In the first quarter of 2015 we exceeded expectations in each of our key measures of new orders, revenues and profit.”
 
“We are well positioned to pursue future growth as well, as demonstrated by the recently announced acquisitions of MACH4 Pharma Systems, a producer of robotic medication dispensing systems and Avantec Healthcare Ltd., our longstanding distribution partner in the U.K., in addition to our continued success in competitive conversions of leading health systems,” he added.

Reporting Segments

In the first quarter of 2015, we enhanced the management of our business, operating structure and segment reporting structure by excluding certain corporate-level costs from our reporting segments based on how the Chief Operating Decision Maker (“CODM”)

1



reviews the business. Corporate-level costs may include expenses related to executive management, finance and accounting, human resources, legal, training and development, and certain administrative expenses. Our CODM allocates resources and evaluates the performance of our segments using information about its revenues, gross profit and income from operations, excluding certain costs which are managed separately at the corporate level.

The historical information presented has been retrospectively adjusted to reflect the enhanced segment reporting and are included below in 'Segmented Information - As Recast.' We have also provided the same Segmented Information for our current quarter below.


Omnicell Conference Call Information

Omnicell will hold a conference call today, Thursday, April 30, 2015 at 1:30 p.m. PT to discuss first quarter financial results. The conference call can be monitored by dialing 1-800-696-5518 within the U.S. or 1-706-758-4883 for all other locations. The Conference ID # is 28311534. Internet users can access the conference call at http://ir.omnicell.com/events.cfm . A replay of the call will be available today at approximately 4:30 p.m. PT and will be available until 11:59 p.m. PT on May 21, 2015. The replay access numbers are 1-855-859-2056 within the U.S. and 1-404-537-3406 for all other locations, Conference ID # is 28311534.

 



2





About Omnicell

Since 1992, Omnicell (NASDAQ: OMCL) has been creating new efficiencies to improve patient care, anywhere it is delivered. Omnicell is a leading supplier of comprehensive automation and business analytics software for patient-centric medication and supply management across the entire health care continuum from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home.

More than 3,000 customers worldwide have utilized Omnicell Automation and Analytics solutions to increase operational efficiency, reduce errors, deliver actionable intelligence and improve patient safety. Omnicell Medication Adherence solutions, including its MTS Medication Technologies brand, provide innovative medication adherence packaging solutions to help reduce costly hospital readmissions. In addition, these solutions enable approximately 6,000 institutional and retail pharmacies worldwide to maintain high accuracy and quality standards in medication dispensing and administration while optimizing productivity and controlling costs.

For more information about Omnicell, please visit www.omnicell.com.
 

Forward-Looking Statements
 
To the extent any statements contained in this release deal with information that is not historical, these statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. As such, they are subject to the occurrence of many events outside Omnicell’s control and are subject to various risk factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such statements include, but are not limited to Omnicell’s profit and revenue growth and the success of Omnicell’s strategy for growth, including differentiated products, expansion into new markets and targeted acquisitions. Risks that contribute to the uncertain nature of the forward-looking statements include our ability to take advantage of the growth opportunities in medication management across the spectrum of healthcare settings from long term care to home care, unfavorable general economic and market conditions, risks to growth and acceptance of our products and services, including competitive conversions, and to growth of the clinical automation and workflow automation market generally, the potential of increasing competition, potential regulatory changes, the ability of the company to improve sales productivity to grow product bookings, to develop new products and to acquire and successfully integrate companies. These and other risks and uncertainties are described more fully in Omnicell’s most recent filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements contained in this press release speak only as of the date on which they were made. Omnicell undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.


Use of Non-GAAP Financial Information
 
This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Our management evaluates and makes operating decisions using various performance measures. In addition to Omnicell’s GAAP results, we also consider non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income, and non-GAAP net income per diluted share. Additionally, we calculate Adjusted EBITDA (another non-GAAP measure) by means of adjustments to GAAP Net Income. These non-GAAP results should not be considered as an alternative to gross profit, operating expenses, net income, net income per diluted share, or any other performance measure derived in accordance with GAAP. We present these non-GAAP results because we consider them to be important supplemental measures of Omnicell’s performance.

 

3



Our non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income and non-GAAP net income per diluted share are exclusive of certain items to facilitate management’s review of the comparability of Omnicell’s core operating results on a period to period basis because such items are not related to Omnicell’s ongoing core operating results as viewed by management. We define our “core operating results” as those revenues recorded in a particular period and the expenses incurred within that period that directly drive operating income in that period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operating performance, the measures give us a better understanding of how we should invest in research and development, fund infrastructure growth and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results, management specifically adjusted for the following excluded items:

a)  Stock-based compensation expense impact of Accounting Standards Codification (ASC) 718 . We recognize equity plan-related compensation expenses, which represent the fair value of all share-based payments to employees, including grants of employee stock options, as required under ASC 718, Compensation - Stock Compensation (ASC 718) as non-GAAP adjustments in each period.

b) Intangible assets amortization from business acquisitions. We excluded from our non-GAAP results the intangible assets amortization expense resulting from our acquisitions. These non-cash charges are not considered by management to reflect the core cash-generating performance of the business and therefore are excluded from our non-GAAP results.

Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Omnicell’s control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational, or non-cash expenses involving stock option grants.
 
We believe that the presentation of these non-GAAP financial measures is warranted for several reasons:
 
1) Such non-GAAP financial measures provide an additional analytical tool for understanding Omnicell’s financial performance by excluding the impact of items which may obscure trends in the core operating results of the business;
 
2) Since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency and enhances investors’ ability to compare our performance across financial reporting periods;
 
3) These non-GAAP financial measures are employed by Omnicell’s management in its own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting; and
 
4) These non-GAAP financial measures facilitate comparisons to the operating results of other companies in our industry, which use similar financial measures to supplement their GAAP results, thus enhancing the perspective of investors who wish to utilize such comparisons in their analysis of our performance.

 

4



Set forth below are additional reasons why share-based compensation expense related to ASC 718 is excluded from our non-GAAP financial measures:

i)  While share-based compensation calculated in accordance with ASC 718 constitutes an ongoing and recurring expense of Omnicell, it is not an expense that requires cash settlement by Omnicell. We therefore exclude these charges for purposes of evaluating core operating results. Thus, our non-GAAP measurements are presented exclusive of stock-based compensation expense to assist management and investors in evaluating our core operating results.
 
ii) We present ASC 718 share-based payment compensation expense in our reconciliation of non-GAAP financial measures on a pre-tax basis because the exact tax differences related to the timing and deductibility of share-based compensation, under ASC 718 are dependent upon the trading price of Omnicell’s common stock and the timing and exercise by employees of their stock options. As a result of these timing and market uncertainties the tax effect related to share-based compensation expense would be inconsistent in amount and frequency and is therefore excluded from our non-GAAP results.
 
Our Adjusted EBITDA calculation is defined as earnings before interest income and expense, taxes, depreciation and amortization, and non-cash expenses, including ASC 718 stock compensation expense, as well as excluding certain non-GAAP adjustments.

As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for Omnicell’s GAAP results. In the future, we expect to incur expenses similar to certain of the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:
 
· Omnicell’s stock option and stock purchase plans are important components of incentive compensation arrangements and will be reflected as expenses in Omnicell’s GAAP results for the foreseeable future under ASC 718.
 
· Other companies, including companies in Omnicell’s industry, may calculate non-GAAP financial measures differently than Omnicell, limiting their usefulness as a comparative measure.
 
Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between Omnicell’s non-GAAP and GAAP financial results is set forth in the financial tables at the end of this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results that are contained in this press release and in Omnicell’s SEC filings.

 

5




Omnicell, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)

 
Three Months Ended
 
March 31,
2015
 
December 31,
2014
 
March 31,
2014
Revenues:
 
 
 
 
 
Product
$
94,109

 
$
100,291

 
$
82,580

Services and other revenues
22,112

 
21,250

 
19,184

Total revenues
116,221

 
121,541

 
101,764

 
 
 
 
 
 
Cost of revenues:
 
 
 
 
 
Cost of product revenues
45,416

 
49,005

 
38,900

Cost of services and other revenues
9,120

 
8,757

 
8,369

Total cost of revenues
54,536

 
57,762

 
47,269

 
 
 
 
 
 
Gross profit
61,685

 
63,779

 
54,495

 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Research and development
8,019

 
8,132

 
6,121

Selling, general and administrative
43,287

 
42,173

 
38,420

Total operating expenses
51,306

 
50,305

 
44,541

Income from operations
10,379

 
13,474

 
9,954

Interest and other income (expense), net
(517
)
 
(77
)
 
(256
)
Income before provision for income taxes
9,862

 
13,397

 
9,698

Provision for income taxes
3,544

 
4,162

 
3,504

Net income
$
6,318

 
$
9,235

 
$
6,194

 
 
 
 
 
 
Net income per share:
 
 
 
 
 
Basic
$
0.18

 
$
0.26

 
$
0.18

Diluted
$
0.17

 
$
0.25

 
$
0.17

 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
Basic
36,024

 
35,697

 
35,225

Diluted
36,914

 
36,585

 
36,305


 


6




Omnicell, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)

 
March 31,
2015
 
December 31, 2014
 
 
 
 
ASSETS
Current assets:
 

 
 
Cash and cash equivalents
$
139,553

 
$
125,888

Accounts receivable, net
88,107

 
82,763

Inventories
33,190

 
31,554

Prepaid expenses
16,811

 
23,518

Deferred tax assets
12,444

 
12,446

Other current assets
6,217

 
7,215

Total current assets
296,322

 
283,384

Property and equipment, net
34,373

 
36,178

Long-term net investment in sales-type leases
10,443

 
10,848

Goodwill
122,216

 
122,720

Intangible assets, net
81,279

 
82,667

Long-term deferred tax assets
1,330

 
1,144

Other long-term assets
24,963

 
23,273

Total assets
$
570,926

 
$
560,214

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 

 
 
Accounts payable
$
21,812

 
$
19,432

Accrued compensation
17,064

 
19,874

Accrued liabilities
22,113

 
19,299

Deferred service revenue
23,301

 
25,167

Deferred gross profit
24,334

 
28,558

Total current liabilities
108,624

 
112,330

 
 
 
 
Non-current deferred service revenue
19,841

 
20,308

Non-current deferred tax liabilities
30,999

 
30,454

Other long-term liabilities
6,012

 
7,024

Total liabilities
165,476

 
170,116

 
 
 
 
Stockholders’ equity:
 

 
 

Total stockholders’ equity
405,450

 
390,098

 
 
 
 
Total liabilities and stockholders’ equity
$
570,926

 
$
560,214


 



7



Omnicell, Inc.
Reconciliation of GAAP to Non-GAAP
(Unaudited, in thousands, except per share data)

 
 
Three Months Ended
 
 
March 31, 2015
 
December 31, 2014
 
March 31, 2014
 
 
Net Income
 
Net Income per Share-Diluted
 
Net Income
 
Net Income per Share-Diluted
 
Net Income
 
Net Income per Share-Diluted
GAAP
 
$
6,318

 
$
0.17

 
$
9,235

 
$
0.25

 
$
6,194

 
$
0.17

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of intangible assets acquired
   by acquisition
 
1,231

 
 
 
1,233

 
 
 
1,048

 
 
Income tax effect of non-GAAP adjustments (a):
 
(443
)
 
 
 
(383
)
 
 
 
(379
)
 
 
Subtotal after-tax adjustments
 
788

 
 
 
850

 
 
 
669

 
 
ASC 718 share-based compensation adjustment  (b) :
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit
 
517

 
 
 
483

 
 
 
268

 
 
Operating expenses
 
3,148

 
 
 
3,692

 
 
 
2,461

 
 
Subtotal ASC 718 share-based compensation
   adjustments
 
3,665

 
 
 
4,175

 
 
 
2,729

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-GAAP adjustments
 
4,453

 
0.12

 
5,025

 
0.14

 
3,398

 
0.09

 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
 
$
10,771

 
$
0.29

 
$
14,260

 
$
0.39

 
$
9,592

 
$
0.26


____________________________________________

(a)  
Tax effects are calculated using the effective tax rates for the respective periods presented.

(b)  
This adjustment reflects the accounting impact of non-cash stock-based compensation expense for the periods presented.
 





8



Omnicell, Inc.
Calculation of Adjusted EBITDA (1)  
(Unaudited, in thousands)


 
 
Three Months Ended
 
 
March 31,
2015
 
December 31,
2014
 
March 31,
2014
 
 
 
 
 
 
 
GAAP net income
 
$
6,318

 
$
9,235

 
$
6,194

 
 
 
 
 
 
 
Add back:
 
 
 
 
 
 
ASC 718 stock compensation expense
 
3,665

 
4,175

 
2,729

Interest expense, net
 
99

 
18

 
(2
)
Depreciation and amortization expense
 
5,711

 
5,566

 
4,612

Income tax expense
 
3,544

 
4,162

 
3,504

 
 
 
 
 
 
 
Non-GAAP adjusted EBITDA (1)
 
$
19,337

 
$
23,156

 
$
17,037


____________________________________________

(1)  
Defined as earnings before interest income and expense, taxes, depreciation and amortization, and non-cash expenses, including stock compensation expense, per ASC 718, as well as excluding certain non-GAAP adjustments.
 
 

9



Omnicell, Inc.
Segmented Information - As Recast
(Unaudited, in thousands, except for percentages)

 
Three Months Ended March 31, 2014
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
 
Revenues
$
81,499

 
$
20,265

 
$
101,764

Cost of revenues
34,940

 
12,329

 
47,269

Gross profit
46,559

 
7,936

 
54,495

Gross margin %
57.1
%
 
39.2
%
 
53.6
%
 
 
 
 
 
 
Operating expenses
25,102

 
4,651

 
29,753

Income from segment operations
$
21,457

 
$
3,285

 
$
24,742

Operating margin %
26.3
%
 
16.2
%
 
24.3
%
 
 
 
 
 
 
Corporate costs
 
 
 
 
14,788

Income from operations
 
 
 
 
$
9,954


 

10



Omnicell, Inc.
Segmented Information - As Recast
(Unaudited, in thousands, except for percentages)

 
Three Months Ended June 30, 2014
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
 
Revenues
$
84,702

 
$
20,350

 
$
105,052

Cost of revenues
35,992

 
13,020

 
49,012

Gross profit
48,710

 
7,330

 
56,040

Gross margin %
57.5
%
 
36.0
%
 
53.3
%
 
 
 
 
 
 
Operating expenses
26,044

 
4,800

 
30,844

Income from segment operations
$
22,666

 
$
2,530

 
25,196

Operating margin %
26.8
%
 
12.4
%
 
24.0
%
 
 
 
 
 
 
Corporate costs
 
 
 
 
12,638

Income from operations
 
 
 
 
$
12,558



 

11



Omnicell, Inc.
Segmented Information - As Recast
(Unaudited, in thousands, except for percentages)


 
Three Months Ended September 30, 2014
 
Automation and
Analytics
 
Medication
Adherence (1)
 
Total
 
 
Revenues
$
89,547

 
$
22,996

 
$
112,543

Cost of revenues
38,412

 
14,585

 
52,997

Gross profit
51,135

 
8,411

 
59,546

Gross margin %
57.1
%
 
36.6
%
 
52.9
%
 
 
 
 
 
 
Operating expenses
27,420

 
4,822

 
32,242

Income from segment operations
$
23,715

 
$
3,589

 
27,304

Operating margin %
26.5
%
 
15.6
%
 
24.3
%
 
 
 
 
 
 
Corporate costs
 
 
 
 
13,707

Income from operations
 
 
 
 
$
13,597


_________________________________________________
(1)  
Includes Surgichem results as of August 2014.

 

12



Omnicell, Inc.
Segmented Information - As Recast
(Unaudited, in thousands, except for percentages)


 
Three Months Ended December 31, 2014
 
Automation and
Analytics
 
Medication
Adherence (1)
 
Total
 
 
Revenues
$
98,347

 
$
23,194

 
$
121,541

Cost of revenues
41,983

 
15,779

 
57,762

Gross profit
56,364

 
7,415

 
63,779

Gross margin %
57.3
%
 
32.0
%
 
52.5
%
 
 
 
 
 
 
Operating expenses
27,363

 
6,313

 
33,676

Income from segment operations
$
29,001

 
$
1,102

 
30,103

Operating margin %
29.5
%
 
4.8
%
 
24.8
%
 
 
 
 
 
 
Corporate costs
 
 
 
 
16,629

Income from operations
 
 
 
 
$
13,474


_________________________________________________
(1)  
Includes Surgichem results as of August 2014.

 



13



Omnicell, Inc.
Segmented Information - As Recast
(Unaudited, in thousands, except for percentages)


 
Twelve Months Ended December 31, 2014
 
Automation and
Analytics
 
Medication
Adherence (1)
 
Total
 
 
Revenues
$
354,095

 
$
86,805

 
$
440,900

Cost of revenues
151,327

 
55,713

 
207,040

Gross profit
202,768

 
31,092

 
233,860

Gross margin %
57.3
%
 
35.8
%
 
53.0
%
 
 
 
 
 
 
Operating expenses
105,929

 
20,586

 
126,515

Income from segment operations
$
96,839

 
$
10,506

 
107,345

Operating margin %
27.3
%
 
12.1
%
 
24.3
%
 
 
 
 
 
 
Corporate costs
 
 
 
 
57,762

Income from operations
 
 
 
 
$
49,583


_________________________________________________
(1)  
Includes Surgichem results as of August 2014.

 



14



Omnicell, Inc.
Segmented Information
(Unaudited, in thousands, except for percentages)


 
Three Months Ended March 31, 2015
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
 
Revenues
$
92,779

 
$
23,442

 
$
116,221

Cost of revenues
38,852

 
15,684

 
54,536

Gross profit
53,927

 
7,758

 
61,685

Gross margin %
58.1
%
 
33.1
%

53.1
%
 
 
 
 
 
 
Operating expenses
28,589

 
6,341

 
34,930

Income from segment operations
$
25,338

 
$
1,417

 
26,755

Operating margin %
27.3
%
 
6.0
%
 
23.0
%
 
 
 
 
 
 
Corporate costs
 
 
 
 
16,376

Income from operations
 
 
 
 
$
10,379


 



15



Omnicell, Inc.
Non-GAAP Gross Margin and Non-GAAP Operating Margin
(Unaudited, in thousands, except for percentages)

 
Three Months Ended
 
March 31,
2015
 
March 31,
2014
 
 
 
 
 
 
 
 
Revenue

$
116,221

 
 
 
$
101,764

 
 
 
 
 
 
 
 
 
 
GAAP Gross profit
$
61,685

 
53.1
%
 
$
54,495

 
53.6
%
Plus:
 
 
 
 
 
 
 
a) Stock-based compensation expense
517

 
0.4
%
 
268

 
0.3
%
b) Amortization expense of acquired intangible assets and
       other acquisition-related expenses
368

 
0.3
%
 
368

 
0.3
%
Non-GAAP Gross profit
$
62,570

 
53.8
%
 
$
55,131

 
54.2
%
 
 
 
 
 
 
 
 
GAAP Operating expenses
$
51,306

 
44.1
%
 
$
44,541

 
43.8
%
Less:
 
 
 
 
 
 
 
a) Stock-based compensation expense
3,148

 
2.7
%
 
2,461

 
2.4
%
b) Amortization expense of acquired intangible assets and
       other acquisition-related expenses
863

 
0.7
%
 
680

 
0.7
%
Non-GAAP Operating expenses
$
47,295

 
40.7
%
 
$
41,400

 
40.7
%
 
 
 
 
 
 
 
 
GAAP Operating income
$
10,379

 
8.9
%
 
$
9,954

 
9.8
%
Plus:
 
 
 
 
 
 
 
a) Stock-based compensation expense
3,665

 
3.1
%
 
2,729

 
2.7
%
b) Amortization expense of acquired intangible assets and
       other acquisition-related expenses
1,231

 
1.1
%
 
1,048

 
1.0
%
Non-GAAP Operating income
$
15,275

 
13.1
%
 
$
13,731

 
13.5
%

 
 




16



Omnicell, Inc.
Segment Information - Non-GAAP Gross Margin and Non-GAAP Operating Margin
(Unaudited, in thousands, except for percentages)

 
Three Months Ended March 31, 2015
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
92,779

 
 
 
$
23,442

 
 
 
$
116,221

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Gross profit
$
53,927

 
58.1
%
 
$
7,758

 
33.1
%
 
$
61,685

 
53.1
%
Plus:
 
 
 
 
 
 
 
 
 
 
 
a) Stock-based compensation expense
351

 
0.4
%
 
$
166

 
0.7
%
 
517

 
0.4
%
b) Amortization expense of acquired intangible
assets and other acquisition-related expenses
35

 
0.0
%
 
$
333

 
1.4
%
 
368

 
0.3
%
Non-GAAP Gross profit
$
54,313

 
58.5
%
 
$
8,257

 
35.2
%
 
$
62,570

 
53.8
%
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Operating income
$
25,338

 
27.3
%
 
$
1,417

 
6.1
%
 
$
26,755

 
23.0
%
Plus:
 
 
 
 
 
 
 
 
 
 
 
a) Stock-based compensation expense
1,443

 
1.5
%
 
256

 
1.1
%
 
1,699

 
1.4
%
b) Amortization expense of acquired intangible
assets and other acquisition-related expenses
147

 
0.2
%
 
1,084

 
4.6
%
 
1,231

 
1.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Operating income
$
26,928

 
29.0
%
 
$
2,757

 
11.8
%
 
$
29,685

 
25.5
%
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Corporate costs
 
 
 
 
 
 
 
 
$
16,376

 
14.1
%
Less: Stock-based compensation expense
 
 
 
 
 
 
 
 
1,966

 
1.7
%
Non-GAAP Corporate costs
 
 
 
 
 
 
 
 
$
14,410

 
12.4
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Income from operations
 
 
 
 
 
 
 
 
$
15,275

 
13.1
%

 



17



Omnicell, Inc.
Segment Information - Non-GAAP Gross Margin and Non-GAAP Operating Margin
(Unaudited, in thousands, except for percentages)

 
Three Months Ended March 31, 2014
 
Automation and
Analytics
 
Medication
Adherence
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
81,499

 
 
 
$
20,265

 
 
 
$
101,764

 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Gross profit
$
46,559

 
57.1
%
 
$
7,936

 
39.2
%
 
$
54,495

 
53.6
%
Plus:
 
 
 
 
 
 
 
 
 
 
 
a) Stock-based compensation expense
237

 
0.3
%
 
31

 
0.2
%
 
268

 
0.3
%
b) Amortization expense of acquired intangible
assets and other acquisition-related expenses
35

 
0.1
%
 
333

 
1.6
%
 
368

 
0.3
%
Non-GAAP Gross profit
$
46,831

 
57.5
%
 
$
8,300

 
41.0
%
 
$
55,131

 
54.2
%
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Operating income
$
21,457

 
26.3
%
 
$
3,285

 
16.2
%
 
$
24,742

 
24.3
%
Plus:
 
 
 
 
 
 
 
 
 
 
 
a) Stock-based compensation expense
1,029

 
1.3
%
 
156

 
0.8
%
 
1,185

 
1.2
%
b) Amortization expense of acquired intangible
       assets and other acquisition-related expenses
147

 
0.2
%
 
901

 
4.4
%
 
1,048

 
1.0
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Operating income
$
22,633

 
27.8
%
 
$
4,342

 
21.4
%
 
$
26,975

 
26.5
%
 
 
 
 
 
 
 
 
 
 
 
 
GAAP Corporate costs
 
 
 
 
 
 
 
 
$
14,788

 
14.5
%
Less: Stock-based compensation expense
 
 
 
 
 
 
 
 
1,544

 
1.5
%
Non-GAAP Corporate costs
 
 
 
 
 
 
 
 
$
13,244

 
13.0
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Income from operations
 
 
 
 
 
 
 
 
$
13,731

 
13.5
%
 

 



18